Episode 127: The Quickie: How To Eat Nutritiously On A Budget
Apparently, a big part of adulting is learning how to feed yourself, but with all the expensive health foods and skyrocketing grocery prices, eating well can feel financially overwhelming. So this week we’re talking about how to balance our nutrition without breaking the bank, because if we’ve learned anything on our wellness journeys, it’s that there is no one-size-fits-all solution for healthy eating and finding what works for your body can have a huge impact on how you feel.
Apparently, a big part of adulting is learning how to feed yourself, but with all the expensive health foods and skyrocketing grocery prices, eating well can feel financially overwhelming. So this week we’re talking about how to balance our nutrition without breaking the bank, because if we’ve learned anything on our wellness journeys, it’s that there is no one-size-fits-all solution for healthy eating and finding what works for your body can have a huge impact on how you feel.
Whatever your health goals are, we should all aspire to a solid balance of protein, healthy fats, and fibre at every meal—and it doesn’t have to cost your whole paycheck. Join us as we get back to the basics on a budget!
Tune in as we chat about:
Myth-busting expensive health foods
The healthy changes Gill and Cailyn have made
Easy ways to keep costs down with meal-planning
How to hack your grocery shopping
Getting the most out of what you make
The benefits of growing your own food
We hope this episode inspires you to keep that wallet and booty thick on your pursuit of healthy eating! Special thanks to Clover Leaf Flavoured Tuna for sponsoring today’s episode. Check out cloverleaf.ca for delicious and easy recipe ideas.
If you have a topic you’d like us to cover or a guest you want us to interview, comment or DM us on Instagram:
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Episode 117: The Quickie: How To Save Money And Budget Better | Rerelease
Spring has arrived, and just like the flowers outside, your finances deserve to bloom and flourish this season too! But with interest rates and inflation on the rise, saving money can feel like we’re all trying to swim upstream. So this week we’re throwing it back to an oldie but a goldie where we dive into some easy ways to save money and budget better, literally starting today! Because adulting just hits differently when you have your financial shit together.
Spring has arrived, and just like the flowers outside, your finances deserve to bloom and flourish this season too! But with interest rates and inflation on the rise, saving money can feel like we’re all trying to swim upstream.
So this week we’re throwing it back to an oldie but a goldie where we dive into some easy ways to save money and budget better, literally starting today! Because adulting just hits differently when you have your financial shit together.
Tune in to get the financial scoop on:
- Understanding your spending triggers
- Investing in everyday items
- Why negotiating with cash is King
- How to save on your fave clothes each season
- Automating your banking to help you save
- Hacking your utility bill
- How to avoid paying annual fees on credit cards
- Tips on getting a higher interest rate on your savings account
- What Gill and Cailyn both realized they need to cut back on
We hope this episode inspires you to save a little money and achieve all of your financial dreams!
If you have a topic you’d like us to cover or a guest you want us to interview, comment or DM us on Instagram:
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Episode 85: How To Buy A Home In The Current Real Estate Market, with realtor Alexandra Cote
The real estate market is crazy right now, but if there’s one thing we learned from today’s episode, it’s that home ownership is absolutely still possible right now, and there’s not necessarily a “good” or “bad” time to get into the market — if you can afford to get in, start building that equity, boo!
The real estate market is crazy right now, but if there’s one thing we learned from today’s episode, it’s that home ownership is absolutely still possible right now, and there’s not necessarily a “good” or “bad” time to get into the market — if you can afford to get in, start building that equity, boo!
But is it *really* more expensive to get into the market right now with current lending rates, or do the costs even out in a cooler buyers’ market? Tune in for some stress-busting answers.
As homeowners themselves, Gill and Cailyn both know how stressful it can be buying a first home, especially in a volatile economy. From hidden costs and mortgage options, to offer strategies when you find the right home for you, we get all the answers from licensed realtor, Alexandra Cote. Alexandra has been voted best realtor in Toronto in NOW Magazine’s Reader’s Choice Awards since 2016, and beyond helping her clients reach their real estate goals, she also works alongside the Government Relations and Affordable Housing Committees to create positive change in housing policies.
Join us as we chat about:
Gill and Cailyn’s journeys to home ownership
Avoiding being “house poor”
Navigating the current market and higher interest rates
Plans and incentives for first-time home buyers
Setting a budget for your home hunt, and hidden costs to consider
Mortgage term options, finding a broker, and getting preapproved
What to know about down payments
Creating a winning offer strategy
Negotiating conditions and inclusions in your offer
We hope this episode helps you feel a bit more clear and confident on your road to home ownership!
Follow Alexandra:
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Episode 71: Teach Me How to Recession-Proof My Finances and Navigate Inflation and Interest Rates, with Nicole Victoria of No Budget Babe
As if adulting wasn’t hard enough already, we’re now facing the realities of rising interest rates, skyrocketing inflation, mass layoffs and a looming recession. Anyone else need a drink? So this week’s episode is all about how to recession-proof our finances, because economic instability is upon us, whether we like it or not.
There is A LOT to learn when it comes to protecting your nest egg, winning in an unstable stock market, and multiplying your revenue streams, so we brought in financial expert Nicole Victoria AKA No Budget Babe, to teach us how to take control of our finances.
As if adulting wasn’t hard enough already, we’re now facing the realities of rising interest rates, skyrocketing inflation, mass layoffs and a looming recession. Anyone else need a drink? So this week’s episode is all about how to recession-proof our finances, because economic instability is upon us, whether we like it or not.
There is A LOT to learn when it comes to protecting your nest egg, winning in an unstable stock market, and multiplying your revenue streams, so we brought in financial expert Nicole Victoria AKA No Budget Babe, to teach us how to take control of our finances. Nicole is a CEO, money coach and financial literacy advocate who specializes in helping millennial and gen-z women effortlessly manage their money and build bank accounts that never stop growing. So grab a glass (or a bottle—economies of scale!) of wine, and get ready to set yourself up for financial success.
Join us as we chat about:
What to do with your investments during a recession
The history of stock market crashes and bear markets
The do’s and don’ts of making an emergency fund
How to manage your debt
Ways to start generating passive income
Tips for bringing your fixed costs down and negotiating bills like a pro
The pros and cons of entering the real estate market right now
We hope this episode inspires you to start (or continue) to build your nest egg and invest your money so that you’re set up for success no matter what this crazy economy throws at you!
If you have a topic you’d like us to cover or a guest you want us to interview, comment or DM us on Instagram:
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Episode 47: How To Manage Money In Your Relationship
From discussing salaries and the cost of homes, to splitting the bill and vacation-planning, it’s NEVER easy to talk about money. But it’s super important to get comfortable doing it—in a 2018 Fidelity Couples & Money survey, 46% of couples admitted that money was the biggest challenge in their relationship.
The key is figuring out how you want to structure your finances *together*, so you can contribute and save towards important goals, and still have your own financial independence—which we’re all about!
From discussing salaries and the cost of homes, to splitting the bill and vacation-planning, it’s NEVER easy to talk about money. But it’s super important to get comfortable doing it—in a 2018 Fidelity Couples & Money survey, 46% of couples admitted that money was the biggest challenge in their relationship.
The key is figuring out how you want to structure your finances *together*, so you can contribute and save towards important goals, and still have your own financial independence—which we’re all about!
So we called in Alyssa Davies, the mastermind behind award-winning Canadian personal finance website and YouTube channel, Mixed Up Money, where she dishes out financial content for women who care about their money.
Alyssa published Her first book, The 100 Day Financial Goal Journal, in 2020, and launched a personal finance podcast with her husband, Learn From Us, where they make talking about money feel less awkward and more relatable by sharing their own tough lessons.
Listen in as we chat about:
How to start talking about money with your partner
Different ways to structure your accounts together
How to protect your assets if your partner moves in
How Cailyn navigated money with her husband
Alyssa’s advice for couples who have moved in together
What to do if you have different spending/saving habits
How Alyssa manages money with her husband
Key money goals couples should have
Why prenups don’t need to be a “scary” thing
Alyssa’s tools for successful budgeting with your partner
We hope this episode inspires you to have those important money chats with your partner!
Follow Alyssa:
Budgeting Downloadables: mixedupmoney.com/shop
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Episode 41: How To Buy Or Rent Your Next Home
The housing market is absolutely insane in North America right now, especially in the major cities of Canada (helllllo, Toronto and Vancouver). The market is hotter than ever, and Canadian house prices and home sales hit record highs this March. So in today’s quickie, we’re diving into everything you need to know to navigate renting or buying your next home.
The housing market is absolutely insane in North America right now, especially in the major cities of Canada (helllllo, Toronto and Vancouver). The market is hotter than ever, and Canadian house prices and home sales hit record highs this March. So in today’s quickie, we’re diving into everything you need to know to navigate renting or buying your next home.
Whether you’re moving out into a rental for the first time or thinking about taking the plunge and buying real estate, there’s a lot to consider that can help you with your decision. Hosts Cailyn and Gillian bring their different experiences and perspectives as renters and homeowners to offer up realtalk on the process and logistics of landing your next home.
It’s daunting AF, but there’s still a ton of hope. It’s a good time to rent right now since we’re in a renter’s market, and if you’re looking into homeownership, interest rates are super low for the time being.
Tune in as we chat about:
Trends in the Canadian real estate market, and how much buying a home or renting a condo could set you back in major cities
How to decide between renting and buying based on your goals, values and finances (and the pros and cons of each)
The % of your income you should be sending on your home
The importance of location and neighbourhood
The team of real estate agents, mortgage brokers and lawyers you’ll need in your corner
Everything you need to know about mortgages, explained
The hidden and unexpected costs of buying a home that you should prep for
The process from submitting an offer to picking up the keys on your closing date
The requirements checklist you should use for finding your ideal rental
How to negotiate your rent like a boss
The paperwork, proof and process you’ll need to secure your rental home
We hope this episode helps you in your search for the perfect rental or your first home. Happy house-hunting, friends!
If you have a topic you’d like us to cover or a guest you want us to interview, comment or DM us on Instagram:
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Episode 37: How To Start Investing My Money
Sure, #selfcaresundays are good for the soul, but do you know what else feels good? Financial empowerment. So today we’re talking all things investing with millennial money expert, Jessica Moorehouse.
This is one of our most-requested topics and it’s no surprise why. In our recent Instagram poll, 80% of you said that you find investing intimidating — and we totally get that. A lot of us might believe that investing is only for super rich, middle-aged people, but we promise you that is not the case. It is SO key to start investing even the smallest amount while you’re young, so you can reap the benefits of those early investments later on in life. Hello early retirement!
This episode is brought to you by Dove
Sure, #selfcaresundays are good for the soul, but do you know what else feels good? Financial empowerment. So today we’re talking all things investing with millennial money expert, Jessica Moorehouse. This is one of our most-requested topics and it’s no surprise why. In our recent Instagram poll, 80% of you said that you find investing intimidating — and we totally get that. A lot of us might believe that investing is only for super rich, middle-aged people, but we promise you that is not the case. It is SO key to start investing even the smallest amount while you’re young, so you can reap the benefits of those early investments later on in life. Hello early retirement!
And as we learned in this episode, investing isn’t actually *that* complicated, so those who try to make it sound more difficult than it is have some sort of M.O. But we are ready to flip the script on that narrative to start building our financial skillset and investing with confidence!
Jessica is a millennial money expert, speaker, Accredited Financial Counsellor Canada®, award-winning blogger, host of the More Money Podcast and founder of the Millennial Money Meetup, a series of empowering personal finance events. Her mission is to teach others how to take control of their lives by taking control of their money and we are here for that!
Tune in to hear more about:
The basic investing terminology you should know
How to tell when you’re ready to invest
The different types of investments people can buy
Types of investing accounts you should open
How to invest if you don’t have a ton of money
Understanding your risk tolerance and creating a balanced portfolio
The benefits of investing in increments VS going all in
The top 3 things people should look for when investing in a company
Follow Jessica:
This episode is brought to you by Dove. Visit teachmehowtoadult.ca/dove for details on how to try a free sample of their Deep Moisture Hand Sanitizer that we can’t stop raving about!
If you have a topic you’d like us to cover or a guest you want us to interview, comment or DM us on Instagram:
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Episode 11: How To Budget…And Feel Good About My Money
Money is on everyone's minds right now, but most of us can't make sense of how to manage it. It’s more important than ever to keep an open dialogue about your financial wellbeing, especially as we navigate the effects of the Coronavirus on the economy and workforce. So we're diving into money management, budgeting, savings hacks and the psychology behind how we spend our money with finance expert Melissa Leong.
Money is on everyone's minds right now, but most of us can't make sense of how to manage it. It’s more important than ever to keep an open dialogue about your financial wellbeing, especially as we navigate the effects of the Coronavirus on the economy and workforce. So we're diving into money management, budgeting, savings hacks and the psychology behind how we spend our money with finance expert Melissa Leong.
Melissa is an award-winning finance writer, an on-air money expert on Canada’s leading daytime talk show, The Social, the best-selling author of the feel-good finance guide, Happy Go Money, and the host of the Money Moves podcast. We spoke with Melissa a while ago, before the Coronavirus hit, but her advice on saving, spending, and improving your relationship with money is more relevant than ever.
Melissa makes personal finance fun and relatable, and she wants everyone to start having more conversations with themselves and their peers about money. And when it comes to spending habits, she keeps it refreshingly real: “I’ve learned you can make money work for you, you have to take risks, and you have to invest in the things you care about, like your business, or the things you value...It’s okay to spend money.”
Here are some of the key takeaways from our chat with Melissa:
Budgeting 101: Six key steps for your “spending plan”
1. Calculate your after-tax income and your fixed costs
Your after-tax income is the amount of money that you actually take home each paycheck after all applicable taxes and deductions have been applied. If you’re not sure what your provincial or state tax is, check out these resources:
Your fixed costs are all of the things that you have to pay each month. Think: rent, your mortgage, student loans, car insurance, internet, hydro, etc. Make sure these necessity costs are covered in your budget and that you’re chipping away at being debt-free!
2. Automate your savings
“The savings habits that you establish now will set you up for when you are older,” says Melissa. “You need to start early. You need to have started saving...yesterday! Ten years ago! So if you can, start right now and set up something [that is] automatic.”
Most banks let you set up automatic deposits from your checking account to your savings account on a monthly basis, which you can increase over time. “I don’t care if it’s $5, $20, or $50, set yourself a calendar reminder to bump it up a tiny bit every few months and see if you can keep bumping it up,” suggests Melissa. “I promise you, you’re not going to notice that the money's gone and it will go towards your goals. You need to be putting aside money for short term goals, like a wedding, and long term goals like, retirement. No one is going to look after you, but you.”
3. Track your spending
Once you know your income and fixed costs, track the rest of your spending for one to three months so that you know where your money is actually going (UberEats? Sephora? Manicures? The struggle is real.) There are tons of apps out there like TD MySpend and Quicken (our personal faves) that can do this for you. Once you know where your money is going, you’ll have a better idea of where you might need to cut back—did I really need to sign up for a wine delivery subscription service!?—and how much you can allocate to other important things, like your money values.
4. Set up an emergency fund
As Melissa reminded us, “you don’t know when life is going to turn sour, and you don’t want money to make your life’s problems even worse.” Especially right now, when there’s so much economic uncertainty and job instability in the near future, it’s so important to save up and contribute to your emergency fund. Melissa recommends setting aside three months of living expenses—even more if you’re a freelance worker.
5. Identify your money values
We’re both cutting back and saving up right now, as are a lot of us, but you can still figure out the things that matter most to you that you are comfortable spending money on. These are the priorities that genuinely fulfill you and feel good to spend on, and you should do so without guilt so long as you make concessions elsewhere.
6. Get clear on your financial goals
Trust us, it’s real hard to save if you don’t know what you’re saving for. So whether it’s a new car, a future trip, or a downpayment on a home, get super clear about your goals so you have some purpose to drive all of that saving.
The psychology behind money and spending
Before you can succeed with a spending plan and your financial goals, you first need to understand and solve for your relationship with money. This goes back to how you were raised, Melissa explains. Money is tied to vanity, pride, values, worth, self-esteem and years of associations that you’ve picked up from your environment. But the more we talk about it, the more we can demystify the power money holds: “Let’s talk about how you use money, because money is just a tool,” says Melissa. “It has no meaning. You give it meaning. What meaning are you giving money? What do you think of automatically when someone mentions it?”
The truth is, very few of the things that make you happy can be acquired. “Often, what people spend their money on is to alleviate some sort of pain…we’re buying as a symptom of something. [So] you need to fill your void before you can think about your budget...If you spend because you’re stressed, let’s work on the stress. Then spend your money on meditation classes, or time with loved ones, or experiences.”
Turns out money CAN buy “happiness”...you just need to know how to spend it
“Part of being an adult is making choices, and personal finance is all about choices,” says Melissa. “Don’t let anyone tell you that you can’t buy a latte if you really love lattes.” Remember, it’s not about counting every single penny that goes out your door: “It’s about choosing something that you enjoy, something that you value, something that makes you happy, and then allocating your resources to that and sacrificing elsewhere.”
And that, friends, is why establishing your money values is so important! Identifying them will help you cut back on areas that aren’t actually important to you, so you can spend on areas that fulfill you.
But is there really a happiness threshold when it comes to making money?
Researchers have studied the “magic number” of how much money people need to make to feel happy, and they’ve landed on two figures: Melissa explains that when it comes to day-to-day happiness, the income threshold is $60-$65k USD per household. When it comes to overall life satisfaction, that threshold is closer to $90k per household. But what does that even mean?
“What this [research] is showing is that you need to cover your basics. Any more money above these thresholds is associated with a decline in happiness,” says Melissa. “You may be working more, [it’s] more stressful, you may be focusing on other things that are not as affirming like comparing yourself to others or more material goods.”
One of the interesting aspects of the human psyche is that “we have this wonderful thing called hedonic adaptation, which means whatever it is that you get, you often get used to it, and return to a baseline of happiness,” explains Melissa. This means that no matter how much you make and obtain, you’ll generally get used to that level, and you’ll want more.
So what do we do about it? It’s all a never-ending quest for happiness, says Melissa, but if you want to use benchmarks to be effective in your earnings and success, you should say: “‘If I make this amount, then I will achieve this specific goal.’ That makes it not about happiness—which is a futile quest—it makes it about doing something tangible and helpful to your life, like [paying] off your mortgage faster. Those are specific things, it’s not about joy.”
How do you “flip the script” on your negative money talk and get comfortable broaching it?
When it comes to talking more positively and openly about money, Melissa recommends a few strategies:
Watch your language: “Being aware of the way that you automatically talk about money is the first huge hurdle”, says Melissa. We often don’t pay attention to our internal dialogue and the kind of language we use towards ourselves. “There is a lot of shame and there is a lot of guilt [around money], so being aware of how you put yourself down when it comes to finances is a first step.” Instead of joking that you’re too broke to go out with friends, flip the script and say that you’re working on paying down your debt. “You’re not broke—you’re working on something,” says Melissa. “I don’t feel empowered when somebody is bullying me. So if you’re bullying yourself in your mind, you’re doing yourself a disservice.”
Talk to someone you trust: Talking about your money and savings goals with a friend, family member or colleague will make it okay for them to reveal their own truths about money. “Together we can empower each other to make that conversation easier,” says Melissa.
Take action: “Often confidence comes from doing”, Melissa explains, so even the smallest actions like putting $5 aside each week, or emailing HR about your company’s retirement plans, will help you gain more confidence when it comes to your finances.
What’s the skinny on TFSAs and corporate RRSP programs?
Despite its name (TFSA = tax-free savings account), Melissa reminds us that even though “it’s called a savings account, the power of [a TFSA] is that it’s an investment account.” The beauty of a tax free savings account is that your investments can grow tax-free, so to reap the full benefits of a TFSA, Melissa recommends using it for investing and long-term savings. The Canadian government first introduced TFSAs in 2019 to encourage Canadians to save more money, and since you paid taxes on the money that you put into your TFSA, you do not have to pay any taxes when you take money out. And unlike an RRSP, you can take money out of your TFSA at any time. But there is a limit as to how much money you can contribute to your TFSA each year (known as your contribution limit), which varies from year to year. You can check your contribution limit by logging into your CRA account.
When it comes to corporate RRSP matching programs, Melissa says it best: ”Any program where you are essentially getting free money is...Go! Run there now! Flip your desk and run to HR!” RRSPs (registered retirement savings plan) were introduced to help provide Canadians with tax breaks to incentivize them to save for retirement. The main benefit of an RRSP is that any tax on your RRSP contributions are deferred until retirement when you withdraw your money, so you pay less tax in the year that you contribute. Your RRSP contribution room is 18% of your income, or a maximum amount, which you can also find on your CRA account.
If you can enroll in a company RRSP program or an employee share program where your company matches a portion of your contribution, never leave money on the table!
It might feel overwhelming to get started, but remember that it’s never too late. “I’m sure we can all look back and regret the things we’ve done in the past,” says Melissa, “but we made the choices that we made based on the situation at that time. We did our best. So now we’re trying to empower you with information...but it’s up to you to actually take action!”
We know that these may be stressful times financially, so be sure to consult with a financial advisor or trusted expert if you do need help, and take advantage of any financial resources that you may be eligible for, like the Canada Emergency Response Benefit, if your income has been affected by COVID-19.
We hope that our convo with Melissa inspires you to take control of your personal finances! DM us and let us know how your financial journey is going, and what tips and tricks you’ve used to find financial freedom. See you next week!
If you have a topic you’d like us to cover or a guest you want us to interview, comment or DM us on Instagram:
Connect with Melissa here:
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Episode 03: How to Prep for Tax Season
Welcome to this week's quickie, our super fast take on all the adulting things that matter to you. Today, we’re helping you get ready for tax season with Laura Davidson, an Accounting Consultant, Business Coach, Entrepreneur, and the founder of Modern Money, a financial resource for millennial women.
It's tax season folks, but it doesn’t need to be a horrible, scary thing. You just need to be prepared, organized and informed about how the whole process works.
Whether you’re filing as an individual or as a small business, there’s lots of things to consider to make sure you’re filing correctly and getting all the tax breaks that you can.
What are tax deductions VS tax credits? (2:00-4:00)
Deductions and credits are all the things that can offset the amount of taxes that you owe at the end of the year. You don’t want to leave money on the table, so do your research to maximize your tax return.
Tax deductions reduce your taxable income. For example, if you make $50,000, and have eligible deductions of $5,000, the government will only tax you as if you made $45,000 of income.
This is key for entrepreneurs, freelancers or anyone who currently has a side hustle. When it comes to entrepreneurial costs, as long as it’s necessary for the operation of your business, and you have proof of purchase, you can expense almost anything for your business. Check your own provincial or state government for what deductions you are eligible for, but some examples in Canada include:
RRSP contributions
Charitable donations
Child care expenses
Medical and dental expenses
Moving expenses
Expenses towards your business, or freelance expenses, essentially any expense that is deemed operationally necessary to your business
Advertising fees
Rent/mortgage
Utility costs
New laptop
Phone
Transportation, including car mileage or ubers
Professional fees like legal and accounting
Office supplies
Educational courses & training
Tax credits, on the other hand, are credits that can reduce the amount of taxes that you owe. For example, if you owe $5,000 in taxes at the end of the year but you are eligible for $2,000 in tax credits, you would only have to pay $3,000 in taxes.
When you’re filing your taxes, you’ll be prompted to check any of the tax credit boxes that apply to you. Again, you will have to check your individual provincial or state credits, but in Canada these could include credits for:
Children and dependents benefits
Home Buyers credit
Senior Citizens
Disability
Pension
Student tuition, textbooks, and loan interest
Charitable donations
Expert Tax Advice (4:17)
We’re not the experts, so we called in Laura Davidson to teach us everything you need to know about prepping for your taxes, especially for small businesses and freelancers. Laura is an Accounting Consultant, Business Coach, entrepreneur, and the founder of Modern Money, a financial resource for millennial women. Here are the Taxes 101 basics to know:
The deadline for submitting Canadian taxes as an individual has been extended to June 1, 2020 due to COVID-19. Self-employed professionals can now file up till June 15, 2020.
The deadline to pay all balances owing on your 2019 tax return has been extended to August 31, 2020 to accommodate the effects of COVID-19.
If you’re a corporation, you have six months after your company’s year-end date to file your taxes. So if your year-end is December 1st, that gives you until June 1st.
If you’re filing on your own, the easiest way to submit your taxes is through automated programs like uFile, SimpleTax, TurboTax and QuickBooks.
If you work with a tax accountant, make sure you stay involved and aware of the process. “The more hands on you can be with your money and taxes, the better,” says Laura.
Pay on time! If you miss deadlines the penalties and fees are heavy.
Forms to submit
Individual tax-payers should expect a T4 slip from their employers. Sole proprietors will need a T1, Corporations will file a T2, and anyone with investment income will receive a T5 from their bank.
Preparing for tax season throughout the year
Always be audit-proof: You can be audited back seven years, so make sure you’re prepared for an audit. Especially if you’re an entrepreneur or business owner, it is crucial to keep all of your receipts, says Laura. “Think of a receipt as lost money. If you don’t have it, consider it non-expensable, because you can’t prove the purchase.”
Top up your RRSPs: (10:25) You get a tax credit for contributing to your RRSP, so take full advantage! Your contribution room is 18% of your earnings or a maximum amount. In 2019 the limit was $26,500, and for 2020 the RRSP deduction limit is $27,230. If you don’t contribute in this calendar year, it carries forward to next year. The myCRA.ca site is a great portal when filing your taxes as it shows the contribution limit that’s available for both your RRSP and TFSA accounts. The deadline for RRSP contributions is generally the end of February or beginning of March each year (for 2019 contributions the deadline was March 2, 2020).
Business-owners and HST: (8:00min) “If you are a business owner, sole proprietor, side hustler, or someone who pays HST and income tax, open up a savings account and put aside 20-25% of your revenue every month,” says Laura. “When you charge HST, your cash flow looks higher because you have more money sitting in your bank account, but you don’t own that HST.”
Setting aside that HST money automatically each month will help you prepare for the taxes you owe at the end of the year if they aren’t regularly deducted from your salary.
Once you start earning $30,000, you must register for an HST number for your business. You can register for one before that time if you know you’ll have high operating costs in your first year. “When you spend a lot on business start-up costs, you’ll be charged HST, and you’ll get a refund from the government on all that HST you’ve spent. Then, once you start earning revenue, that HST will balance out and you will owe HST,” Laura explains.
We hope that this episode helps you feel prepared and informed for tax season! If you liked the episode, it would mean the world to us if you would rate the podcast and share it with your friends!
If you have a topic you’d like us to cover or a guest you want us to interview, comment or DM us on Instagram:
@teachmehowtoadultpodcast
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